Gold prices rose sharply on Monday, driven by a weaker U.S. dollar against major currencies and easing trade tensions, which encouraged investors to turn to gold as an attractive alternative to traditional safe-haven assets.
In recent remarks, U.S. Treasury Secretary Scott Besant indicated no decisive progress in trade talks with China but emphasized that the burden does not lie on the United States. On a positive note, Besant highlighted advancements in other trade negotiations, mentioning that a deal with India could be among the first to materialize.
Speaking to CNBC, Besant stated: "China needs to take steps to ease tensions. They export five times more to us than we do to them. These tariffs of 120% and 145% are unsustainable."
These comments follow President Donald Trump's assertion last week that talks with China are ongoing, despite Beijing’s claims to the contrary.
Jonathan Millar, an economist at Barclays Bank, noted that while there are signs of slight easing in trade tensions, real progress remains limited, keeping the risk of a U.S. recession alive.
Investors are also eyeing the crucial earnings season for the first quarter, with over 180 S&P 500 companies — including tech giants like Amazon, Apple, Meta Platforms, and Microsoft — set to report their financial results.
Meanwhile, the U.S. Dollar Index, which measures the greenback against a basket of major currencies, dropped 0.4% to 99.01 points at 11:09 p.m. Mecca time.
At market close, June gold futures surged 1.5% to settle at $3347.70 an ounce.
